13 Oct 2008

Global economic crisis demands new approaches towards Pacific nations - Oxfam

8:18 pm on 13 October 2008

The executive director of Oxfam New Zealand, Barry Coates, says developing countries in the Pacific are vulnerable to the international tightening of credit.

He says the current crisis has the potential to hit developing countries in several ways.

Governments will find it difficult to secure funds, causing liquidity problems; the slowdown in the world economy will lower demand for exports from developing countries, and donor nations will cut back development aid.

Mr Coates says Pacific nations are already facing severe problems such as the rising cost if food, and it's vital that international efforts to deal with the crisis include measures to help developing countries.

He says it demands a re-thinking of IMF policies that have forced developing countries to de-regulate their economies.

"I hope as a result of this we're going to get a greater degree of recognition that developing countries need to be protected from the excesses of an unregulated financial system."